The analysis of close to one million superannuation members has found they are 27% more likely to make voluntary super contributions as the COVID pandemic triggered a greater engagement with super, according to AMP.
The year-on-year comparison showed that members contributed an extra $296 to their super over the three months to September, 2021, which could amount to an additional approximately $75,000 in retirement savings, if maintained.
At the same time, members who withdrew money as a part of the Government’s Early Release of Super (EROS) scheme were 14% more likely to make voluntary contributions to their super than they were pre-COVID.
Following this, those who were working in the retail industry were also restoring their EROS funds faster, the analysis revealed.
The study also found that additional voluntary contribution rates for women were growing 6% faster than men, but despite the increase in voluntary super contributions from EROS, their contribution rates continued to lag the average by 15%.
AMP’s head of technical strategy for superannuation, John Perri, said: “What is pleasing is that following the initial COVID period we have now seen higher-levels of engagement with super and members that participated in EROS seeking to restore their balances.
“It’s also encouraging to see more women making voluntary contributions and taking action with their super, and those working in retail, an industry hit hard by COVID.
“And hopefully, as the circumstances for those who’ve withdrawn super improve, they’ll be more aware of the importance of rebuilding their super and the ways they can do this.”
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
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